Hong Kong’s Exchange Fund posts best returns ever, thanks to global stocks rally
The fund made HK$252 billion last year, almost four times the HK$68.1 billion gains in 2016
Hong Kong’s Exchange Fund, the city’s reserves and asset war chest for defending its currency’s value, has posted its best investment return ever, thanks to buoyant global stock markets.
The fund posted total returns of HK$252 billion (US$32.2 billion) last year, almost four times the HK$68.1 billion gains in 2016, when returns were led by bonds and shares listed outside the city, the Hong Kong Monetary Authority said on Monday.
Last year’s return was much higher than the second highest return of HK$142.2 billion recorded in 2007 at the height of the previous stock market bull run. The fund’s return figure was first disclosed in 1994.
The biggest contributor was a surge in global equities, most notably in Hong Kong which ranked as the world’s best performing major market with a 36 per cent rally in the Hang Seng Index.
The fund made HK$58.3 billion last year from investing in Hong Kong stocks, up from HK$5.3 billion in 2016, while that from shares investment outside the city jumped to HK$80.2 billion from HK$28.6 billion.
